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Complete Commodity Trading

Discussion in 'Scam Alerts' started by JohnKil, Dec 12, 2009.

  1. JohnKil

    JohnKil Recruit

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    Hi
    I got a lot of calls from the above company a month back pushing me to get into the forex market. They operate out of China but the guy was a fellow countryman. He was guaranteeing that the dollat would go to 1.60 within a couple of months and wanted me to take out a loan to get into the market. After saying no god knows how many times I gave in and came up with enough money to buy 4 options. The guy told me I couldn't lose - at least I couldn't lose more that what I put in - that only happens with futures.

    I feel very stupid now. The price has dripped almost 4 cents since I got in and I have no idea what trouble I might be in.

    When I tried contacting the company over the first couple of weeks the phone always seemed to be engaged. I left a Helpdesk note and the guy did get back to me almost a week later - at the time I couldn't take his call as I was in meetings related to my own work.

    The price went up a couple of cents in the first couple of weeks and I wanted to get out but was unsure if that was the right move as the strike price was still 4 cents higher that that. I couldn't contact the company to confirm if I should exit or not. A few days later the price dropped and has continued to drop. I did manage to make contact with the company last week and a new trader spoke to me trying to reassure me that the price was on the way back up. I tried contacting again the following day to see if I could just get out and see what I would lose but I have not had any luck in doing that yet.

    What can I do?

    Thanks
    John
     
  2. Stony

    Stony Sergeant

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    Hello JohnKil,

    it seems you have problems to contact your dealer by phone, which is an absolute "no go" in trading. Trading options requires reliable and instant contact with your broker. If that is not guaranteed, close your trade and your account as soon as possible, regardless of loss.

    Personally, I would never rely on the telephone for trading. State of the art is using a trading platform via internet.

    Regards, Stony
     
  3. JohnKil

    JohnKil Recruit

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    Thanks for the reply Stony.
    I can exercise from the internet but I didn't know whether I should or not. I had no idea whether I would be up or down at the time as I said the strike price on my option was still 4 cents higher than the actual price so I just wanted to confirm that I could do it and was actually making some money.

    I am still confused about actual price and strike price. I was told I was getting into the market at under 1.50 but the strike price showing on the internet was 1.5550.

    Rgds
     
  4. Ricex

    Ricex Sergeant

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    Hello John,

    I will leave aside judgement on how you have got yourself into this situation that's not for me, we all make mistakes under pressure sometimes, and anyway I think you know you shouldn't have done it the way you did.

    Can you provide any more detail on the options that you've bought it might help us. If I've understood right you've got 4 eur/usd call options, and the strike price is 1.555 is that right?

    What is the expiry date?

    Are you sure that the premium is not included in this calculation somewhere?

    The actual price is the spot price, the price right now. The strike price is the price at which you can opt to buy, in your case, the currency. You have an 'option' on buying eur/usd at 1.50, if the price in 2 weeks or 2 months is 1.60 your in the money. if it's at 1.40 and your option expires you lose your investment.

    At the moment the intrinsic value of your option is zero, making it worthless, but you are only risking what it has cost you. In this situation there is no point in excercising the option, let it run and hope.
     
  5. JohnKil

    JohnKil Recruit

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    Hi Ricex
    Thanks for the reply. I am new to this and let myself get suckered into it.
    I did a little reading and what the guy was telling me seemed to be reflected in the sites I was reading - about the dollar being under pressure from China, low interest rates, the printing of dollars by Obama and opec....

    Yes 4 eur/dol at strike price of 1.5550 expires on 8/Jan/2009.

    Just to ease my mind, I can only lose what I put in on the option i.e. $4000 if the price does not go above the strike.
    Thanks
    John
     
  6. Ricex

    Ricex Sergeant

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    yeah, could turn out to be an expensive lesson John....

    Your option will only lose what you paid for it if things don't work out.
     
  7. Pharaoh

    Pharaoh Colonel

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    The first and biggest warning sign - they asked you to borrow money to invest. If anyone ever suggests that, don't give them even one cent, and call your nearest fiscal regulator to report them.
     
  8. JohnKil

    JohnKil Recruit

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    thanks for all the replies. It looks like it will be an expensive lesson, though for a while there I though it would be worse. I have done a bit more reaserch into this area over the past couple of days and have learned a lot but I can see it's only the tip of the iceberg yet. It has definitely aroused my interest in these markets but there will be a lot more study done on my part before I participate in it again.
    Rgds
    JohnKil
     
  9. andyau

    andyau Recruit

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    Thanks for Saving My money

    So is at scam giving CCT your money?
    Been looking at this mob and almost gave them the money to get into this trading stuff and then thought bugger better see what i can find out about them and found this site.
    Awsome glad i did now.:confused:
     
  10. henryochew

    henryochew Recruit

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    Please advice

    Is this the company with the website Complete Commodity Trading

    I have invested $6K so far and been asked to invest another $40K
    I searched the web and there is not much information regarding this company.

    Can someone please advice me on the legality of this company.

    thanks
    Henry
     

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